Insurance Ireland, the industry representative group, has signed up to a new protocol to investigate, record and report suspected fraudulent claims on a more consistent and streamlined basis.
An Garda Síochána, Minister of State with responsibility for financial services Jennifer Carroll MacNeill, and the Alliance for Insurance Reform are also signatories to memorandum of understanding, which is seen as meeting a Government commitment under its insurance reform programme.
“People should not have to absorb insurance fraud costs into their motor, home or business premiums. We are determined to change the culture and practice of insurance fraud in Ireland,” said Ms Carroll MacNeill. “Today is an important step in that.”
Insurance Ireland has previously estimated that claims fraud is costing insurers in the State an estimated €200 million annually, which ends up being borne by policyholders.
Brian Hanley, chief executive of the Alliance for Insurance reform, said: “Insurance companies have considerable resources, and it is vital that a meaningful portion of those resources go towards investigating and challenging suspect claims. There is little point in decrying them otherwise. Insurers often speak about the harm such claims cause and yet it is questionable how much resources they truly invest in detecting it.”
Other insurance reforms in recent years include: the setting up of a judicial council, which introduced guidelines to lower personal injury awards; establishment of a claims database; and a balancing of a property owner or business’s duty of care with personal responsibility of customers or members of the public.
